FDIC not considering ‘blanket insurance’ for bank deposits, Yellen says – Stock market news

WASHINGTON, March 22 (Reuters) – U.S. Treasury Secretary
Janet Yellen said on Wednesday that the Federal Deposit
Insurance Corporation (FDIC) was not considering providing
“blanket insurance” for banking deposits following the collapse
of two U.S. banks this month.

Speaking to a hearing of the U.S. Senate’s Appropriations
Subcommittee on Financial Services and General Government,
Yellen also said that the failure of a small bank or community
bank could trigger runs on larger banks.
(Reporting by David Lawder; writing by Rami Ayyub; Editing by
Lisa Shumaker)